High street banking giant Santander has confirmed plans to shut down 44 of its physical branches across the United Kingdom, a strategic move that places 291 positions at risk of redundancy. The Spain-based financial institution has described these closures as part of a comprehensive network overhaul, directly responding to the accelerating shift of customers toward digital banking platforms.
Digital Transformation Drives Branch Network Restructuring
Santander has highlighted that an overwhelming 96 percent of all customer transactions are now completed through digital channels, reflecting a rapid and sustained increase in online banking adoption. This significant behavioural change among consumers has prompted the bank to reassess its physical footprint, prioritising investment in digital infrastructure while streamlining its traditional branch operations.
Continued Overhaul Following Previous Reductions
This announcement follows less than a year after Santander's previous round of branch closures in March, which saw 95 locations shut and affected approximately 750 employees. The bank's UK chief executive, Mike Regnier, indicated last July that around 2,000 roles had been eliminated over the preceding year through ongoing restructuring efforts, suggesting that further workforce reductions remained a possibility.
New Community Banking Model to Replace Traditional Branches
Santander has emphasised that the closure of traditional branches will be accompanied by the introduction of "community bankers" who will operate from Santander Local stores or shared banking hubs. This approach aims to maintain a physical presence in local communities while adapting to changing customer preferences for banking services.
Revised Branch Network Composition
Following these latest closures, Santander's UK network will comprise 244 full-service branches alongside alternative formats including 19 counter-free branches, 36 reduced-hour branches, six work cafes, and 111 Santander Local outlets. The bank has stressed its continued commitment to physical presence, having invested tens of millions of pounds in refurbishing more than 220 branch sites over the past six years, with over 30 additional locations scheduled for refurbishment in the coming year.
Strategic Context and Future Direction
A Santander spokesperson explained: "In response to a continuing and sizeable shift towards customers using digital banking, we are making changes to our branches to better support our customers. We will continue to invest in both our branch network – comprising of full-service branches, counter-free branches, reduced-hour branches, Santander Locals, and our increasingly popular work cafes – as well as our digital banking services, so we can be there to support our customers however they choose to bank with us."
These developments occur as Santander progresses toward completing its £2.65 billion acquisition of UK banking rival TSB, a transaction expected to finalise later this quarter. While this acquisition will bring additional branches into Santander's portfolio, the bank's overall strategy continues to reflect the broader industry trend toward digital transformation and network optimisation in response to evolving customer behaviour.
